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Liberty Tax Service – Scam, Complaint, Review, or Praise?

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Would you recommend Liberty Tax Service to others?

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • unhappy

    I’m not a Liberty Tax customer, but I refuse to be now due to unethical practices. We had an extreme cold weather advisory in WI that lasted a couple of days. It was 15 below zero with windchill which can result in frostbite within 30 minutes. There were still people dressed as the Statue of Liberty waving a Liberty Tax sign all day everyday in these conditions. Any company that has such little regard for their employees well being in such weather conditions is not a company that I want to do business with.

  • cass

    Filed with them and everything they told me turned out to be false. Now I am having to amend my tax return, and pay the IRS back some of the money. And I paid them for the rapid refund and didn’t get my funds in the time I was told. It would have saved me almost $200 of my return to pick the other options as far as how fast you get your check. I paid for the two day, and it took 3 weeks, if I knew it was going to take 3 weeks I would have picked the cheaper one that said 3 to 4 weeks for my check. They did not call me when the check was there we had to call them and found out it was at the office for two days. DO NOT USE THEM. 

    • karen haguouche

       We filed joint 4-16-12, as of yet the irs has no record of our return.  Unable to get any answers from Liberty.  Office hours is a joke, no one is ever there 12-3pm.
      Our state return is in the same condition.  Never recieved any confirmation that the return has been accepted.  Crying bucket of tears here!

  • XENIA

    I went to Liberty Tax on Dixie Highway in Louisville and it like their school district I was working for was a lying rip off fraud. As a matter of fact it was the “benefit” of teaching there that I was told it was half price. The staff seemed unprofessional and the office sucked but I was on a timeframe. Ended up being charged $450 and the lier charged me $89 to open and close a bogus account to put a check in to pick up from them….didn’t need that and they said they would call and nothing about some account. My taxes this year were done by a CPA and were $100. Really think this company is dreadful!

  • ThinkUOttaKnoThis

     worked for Liberty Tax, and let me tell you, every one I met would be better off if they just did some internet research, and looked over the IRS website for a few hours. That way they’d know to look for when they filed for free elsewhere . As for those of you who have reasons to itemize, have corporate tax forms, file schedule D forms, and/or must or want to file really elaborate schedule C’s hire a real accountant– do you really think showing a person power point slides for 36 hours and showing them how to use tax software in 25 minuets will really qualify them to understand the wonderful system of public revenue accumulation that’s developed since Ancient Egypt, and be able to investigate ways to substantially decrease your tax burden? When you get a tax preparer that says they have been doing this for many years, all it really means is that they’ve seen the same similar power points for the amount of years they’ve worked for LTS.

    The only conceivable reason why someone would file is because they want to get a RAL, or they are trying to fraudulently claim someone or something and if their ass gets caught they are hoping LTS will go to bat for them against the IRS.

    As for the IRS “shutting down” on the 17th of January 2012, I can’t find evidence to support this, I saw that it happened in previous years, but the articles I read didn’t claim that shutting down the few modernized e-filing servers would have a significant impact on tax refund distribution times. I wouldn’t be surprised to learn that this is done every year to test the servers. But sure enough I was told to say the whole IRS-shut-down-spiel when customers asked where their refunds were. 

    As for the printing of checks, I remember seeing loads of client envelopes in crates around the back office, so few had checks in them, it was damned annoying, these people payed $150-$350 to get their taxes prepared and the damned envelopes were just sitting there.

    Also, about the $50 cash BS, yeah, that’s pretty much to cover the hidden bank fees. Sucks to be the franchisee in this case, this $50 comes out of their pocket– literally. But, customers first, it’s sleazy if they tell you  that you get it as a gift, also degrading, “Here you’re so poor, I bet you rarely see a fifty dollar bill! Go, tell your poverty-stricken friends!” You know what I also love, is the whole promotion to double your tax return if you have the best story thing– if you win someone will come to your home dressed as Lady Liberty and present you with an enormous novelty check for the amount of the original refund you received, which just screams “Here, here’s $2500 on a check that Publisher’s Clearing House would write $2Million on, but $2500 is like $2Million to you because you’re poor!”

    Best of luck to you all. I could rant on, but being a sleazy SOB wasn’t my intention, I’m glad to be done with the whole thing. I’m going to go wash myself with a ajax and a brillo pad.

  • Staceyv

    I did my taxes on Feb 3 never used them before they told me it would be 8 to 12 days still no check when I call them they say there waiting on them to come in when I went in there I asked them and they say they print them there atleast 3 to 6 times a day, then they don’t give you nothing when you leave you can get your folder when you pick up your check it cost 223 they did give me 50% luckly but I won’t never use them again I can say that I know someone that did use them and they want to pick and choose on when people get there checks it so funny that they issued a check for there full amount of there refund and that persons owed back child support so laugh that up y I’m waiting on my honest earned refund yall are out of about 1500 from that person for being dumbass and I will never use them again…LIARS LIARs
     

  • Staceyv

    I did my taxes on Feb 3 never used them before they told me it would be 8 to 12 days still no check when I call them they say there waiting on them to come in when I went in there I asked them and they say they print them there atleast 3 to 6 times a day, then they don’t give you nothing when you leave you can get your folder when you pick up your check it cost 223 they did give me 50% luckly but I won’t never use them again I can say that I know someone that did use them and they want to pick and choose on when people get there checks it so funny that they issued a check for there full amount of there refund and that persons owed back child support so laugh that up y I’m waiting on my honest earned refund yall are out of about 1500 from that person for being dumbass and I will never use them again…LIARS LIARs
     

  • JamesHanning

    My Boyfriend also went in for them to prepare his taxes as well it was almost three weeks ago and the told him that he would get 578 for federal check and that 90 dollars to prepare that would come from federeal when the mailed the check he got 488 back from the federeal and they called a week ago anfd said the mailed the state from the office at Hurriacane Schoals Lawrenvelle, Ga  and my boyfriend would get it in the mail so explain that it is still not here and we live two blocks away from this office and know they are saying that they took his state check to either pay for taxes prepears or to pay for federeal check one has nothing to do with the other

  • JamesHanning

    My Boyfriend also went in for them to prepare his taxes as well it was almost three weeks ago and the told him that he would get 578 for federal check and that 90 dollars to prepare that would come from federeal when the mailed the check he got 488 back from the federeal and they called a week ago anfd said the mailed the state from the office at Hurriacane Schoals Lawrenvelle, Ga  and my boyfriend would get it in the mail so explain that it is still not here and we live two blocks away from this office and know they are saying that they took his state check to either pay for taxes prepears or to pay for federeal check one has nothing to do with the other

  • CHARLIERANDALL1

    A BIG RIPOFF WANTED TO CHARGE ME 329.00, JACKSON HUYETT DID IT FOR 78.00
    FED AND STATE

    • David D.

      You can do Turbo Tax online for less than $30 – very nice product.. I have been using it for at least 8 years

  • Klbagley

    I used this company for the first time and was mislead from the get-go!  After completing my return, I questioned about a $17 out of state tax that I needed to pay, costing me $89.  I said to let them keep the money; but did anyone tell me that was an option?  NO.  Then it was guranteed to be here by Feb 1, if not definitely on Feb 2.  This is not going to happen.  The cost was around $300 for mine, not a huge deal for a return.  This place is misrepresenting the public and should be held accountable when they claim to provide superior service.  They run people through like cattle and just take their money.  Stay away from Liberty in Rapid City, SD.

  • Georgiaboy30228

    I used liberty joke service in georgia, and every time I call, I am told a different lie. #1 “We are not receiving any checks today.” #2 The IRS was closed for several days and didnt process anyone’s returns, didn’t you see it on the news?” The list goes on and on and on.

  • Zuricakim

    TThey are liars they charge you all that money and don’t file your taxes until 2 weeks later and it goes to there account not yours .Then if you take a loan you will get a refund in 24 hours they ate thieves and when you let them no you are going to turn them in oh the owner calls and wants to work a deal out with toy no turn them in

  • Laura

    I filed my taxes about 2 weeks ago at my local Liberty Tax Service office. For the past couple of years I had been using an independent CPA but she moved away and I didn’t feel like mailing her my paperwork and then waiting weeks to get it back. Anyways, I should have called the IRS or done more research about a good, affordable CPA but decided to use these guys instead. Let me tell you something, they are scammers. From the moment you walk in they are super nice and offer you free drinks and snacks while they distract you from asking questions. I kept asking how much it would be to do my return but they would always change the subject. All of a sudden I was handed an envelope with $50 cash and the guy informed me that he had sent my return. I was shocked because I clearly wanted to know how much I would have to paid before agreeing to anything but it was too late. He charged me $130 for filing 2 W2′s. Then he proceeded to make it seem like he was giving me back $50 from those $130 which would leave the fee at $80 (at least this is what I understood). I felt a little uncomfortable because they went ahead and did the return without my permission but I let it go. I should also mention they told me the return would be a certain amount but when I got the paperwork back it said something else. Apparently my original return was coming back approximately $200 short. I didn’t understand what those people had done so I called them back to ask. Needless to say the guy started giving me an attitude even though I made it clear I wasn’t calling to argue I just didn’t understand what they had done. He told me that I did know because he had explained it to me…BIG FAT LIE! I told him that he hadn’t that they just went ahead and did the work without properly explaining anything to me. On the invoie they gave me back it said the preparation was $218 but that they had given me $88 off which left it at $130, the $50 had nothing to do with the fee it was more like an advance I didn’t ask for. I hung up on him and called the IRS. They told me that my return was going to the preparers bank account and they didn’t understand why. I didn’t even know this and I certainly didn’t give permission for such a thing. Now I have to go to an IRS walk in office and figure out what is going on and to make sure my return was filed properly. I feel completely violated. Liberty Tax has horribly shady business practices and they are extremely expensive (I’ve never paid more than $60 before this).

  • Laura

    I filed my taxes about 2 weeks ago at my local Liberty Tax Service office. For the past couple of years I had been using an independent CPA but she moved away and I didn’t feel like mailing her my paperwork and then waiting weeks to get it back. Anyways, I should have called the IRS or done more research about a good, affordable CPA but decided to use these guys instead. Let me tell you something, they are scammers. From the moment you walk in they are super nice and offer you free drinks and snacks while they distract you from asking questions. I kept asking how much it would be to do my return but they would always change the subject. All of a sudden I was handed an envelope with $50 cash and the guy informed me that he had sent my return. I was shocked because I clearly wanted to know how much I would have to paid before agreeing to anything but it was too late. He charged me $130 for filing 2 W2′s. Then he proceeded to make it seem like he was giving me back $50 from those $130 which would leave the fee at $80 (at least this is what I understood). I felt a little uncomfortable because they went ahead and did the return without my permission but I let it go. I should also mention they told me the return would be a certain amount but when I got the paperwork back it said something else. Apparently my original return was coming back approximately $200 short. I didn’t understand what those people had done so I called them back to ask. Needless to say the guy started giving me an attitude even though I made it clear I wasn’t calling to argue I just didn’t understand what they had done. He told me that I did know because he had explained it to me…BIG FAT LIE! I told him that he hadn’t that they just went ahead and did the work without properly explaining anything to me. On the invoie they gave me back it said the preparation was $218 but that they had given me $88 off which left it at $130, the $50 had nothing to do with the fee it was more like an advance I didn’t ask for. I hung up on him and called the IRS. They told me that my return was going to the preparers bank account and they didn’t understand why. I didn’t even know this and I certainly didn’t give permission for such a thing. Now I have to go to an IRS walk in office and figure out what is going on and to make sure my return was filed properly. I feel completely violated. Liberty Tax has horribly shady business practices and they are extremely expensive (I’ve never paid more than $60 before this).

  • Steve Rhode

    Starting this year the refund anticipation loans (RAL) have become a joke. The quickest way to get a refund is clearly for free and let the IRS and state deposit the refund into your bank account. Takes a week or less.

    You paid $400 for the RAL! Ouch.

  • Psupensky1

    So I filed my taxes 1/23/11, was not told or explained the RAL system (always filed RAL in the past with NO Problems) and originally was NOT told that it would take 8-14 days to recieve my full refund, I am use to recieving my RAL in 2 days tops, also was not told about debt indicator’s, etc..I also was not told the Ral would ONLY give me 1500.00 towards my refund until the federal went through. It is now almost a month and no refunds. My daughter, 3 friends filed 2 weeks after me, already have their returns back, (WITHOUT doing RAL, I must add) me? still waiting, Then, I was suppose to recieve my state back last thursday (2/10), and the RAL bank lending institute mailed me a letter today 2/15 stating they took all my state check to replace the 1500 they gave me for a loan on 1/25 towards my federal, and i have to waite to recieve my federal return still for my money. Once again, was never told the state even went through the RAL, was under the assumption it was only the federal. so 1 month later, no state, no federal, no RAL. Just a B.S. loan of 1500 dlrs that was given to me a month ago, that they turned around and TOOK BACK…What A JOKE..Upon my research have encountered numerous complaints, scams, etc..of Liberty Tax, and their lending bank. They lie to people saying “you will recieve your refund in 1-2 days (you will really recieve a small amount that the bank takes back immediately therefore, leaves you with nothing and still waiting) Please, Please, please read their clauses and paperwork when agreeing to something, because they clearly lied to my face on several occasions (just so I would file with them) and the paperwork states otherwise. The bank blames them, they blame the bank. You get NO WHERE..Hmmm…let me see, I pay you 400.00 for a RAL, I don’t get a RAL, I get to borrow 1500 from your bank, they take it immediately from my state, yup…still left with nothing…because what you lent me…you took back, and still no refund….like giving a child a piece of candy, then saying “Nope, can’t have it…NICE BUSINESS LIBERTY TAX SERVICE……THANK YOU…

  • Psupensky1

    So I filed my taxes 1/23/11, was not told or explained the RAL system (always filed RAL in the past with NO Problems) and originally was NOT told that it would take 8-14 days to recieve my full refund, I am use to recieving my RAL in 2 days tops, also was not told about debt indicator’s, etc..I also was not told the Ral would ONLY give me 1500.00 towards my refund until the federal went through. It is now almost a month and no refunds. My daughter, 3 friends filed 2 weeks after me, already have their returns back, (WITHOUT doing RAL, I must add) me? still waiting, Then, I was suppose to recieve my state back last thursday (2/10), and the RAL bank lending institute mailed me a letter today 2/15 stating they took all my state check to replace the 1500 they gave me for a loan on 1/25 towards my federal, and i have to waite to recieve my federal return still for my money. Once again, was never told the state even went through the RAL, was under the assumption it was only the federal. so 1 month later, no state, no federal, no RAL. Just a B.S. loan of 1500 dlrs that was given to me a month ago, that they turned around and TOOK BACK…What A JOKE..Upon my research have encountered numerous complaints, scams, etc..of Liberty Tax, and their lending bank. They lie to people saying “you will recieve your refund in 1-2 days (you will really recieve a small amount that the bank takes back immediately therefore, leaves you with nothing and still waiting) Please, Please, please read their clauses and paperwork when agreeing to something, because they clearly lied to my face on several occasions (just so I would file with them) and the paperwork states otherwise. The bank blames them, they blame the bank. You get NO WHERE..Hmmm…let me see, I pay you 400.00 for a RAL, I don’t get a RAL, I get to borrow 1500 from your bank, they take it immediately from my state, yup…still left with nothing…because what you lent me…you took back, and still no refund….like giving a child a piece of candy, then saying “Nope, can’t have it…NICE BUSINESS LIBERTY TAX SERVICE……THANK YOU…

    • http://GetOutOfDebt.org Steve Rhode

      Starting this year the refund anticipation loans (RAL) have become a joke. The quickest way to get a refund is clearly for free and let the IRS and state deposit the refund into your bank account. Takes a week or less.

      You paid $400 for the RAL! Ouch.

  • Jaws06271971

    i just had my taxes done with liberty tax service in tacoma, wa by the tacoma mall and they told me my check would be in on feb 4 and when i went in to get my check they told me oh sorry sir and blamed it on the irs. well i can tell you this i am in the military and i am going to tell everyone in the military not to use liberty tax service because all they are is a bunch of liars, and they say they support our troops more like they like to rip off our troops.

  • Jaws06271971

    i just had my taxes done with liberty tax service in tacoma, wa by the tacoma mall and they told me my check would be in on feb 4 and when i went in to get my check they told me oh sorry sir and blamed it on the irs. well i can tell you this i am in the military and i am going to tell everyone in the military not to use liberty tax service because all they are is a bunch of liars, and they say they support our troops more like they like to rip off our troops.

    • Daemianc

      The IRS has been behind about a week since the begining of tax season. A tax preparer gives you an estimated date for your refund, this comes off of the IRS e-file Refund Cycle Chart. Does not make them liars, it makes the IRS slow. Gosh, people will bad mouth a company for anything!

  • Tracey

    I had my taxes done but never again U was told i would get the loan in two days now was told have to wait 08 to 15 days WHAT A RIP OFF

  • Tracey

    I had my taxes done but never again U was told i would get the loan in two days now was told have to wait 08 to 15 days WHAT A RIP OFF

    • Daemianc

      Tracey, I’m not trying to be mean but you applied for a Refund Anticipation Loan and were not approved by the bank. This means your credit was not good enough to get the loan. You instead got an ERC/ERD which takes no credit to achieve. This means that when the IRS releases the funds, you get your return. Did you pay attention when you were signing the paperwork? Did you read the need to know sheet?

  • Bballervirgo1

    I had never used Liberty Tax Service before but this year I chose to do so. It has been a complete nightmare. My taxes were done back in late March and after a couple of amendments I’m just now getting information that my refund will be released and this is now Nov. At Liberty it never disclosed to me that all these other fees were going to be deducted from State and Federal returns. My entire State return was taken in so called fees by whomever they use for check processing. You are paying Liberty and another organization for processing your tax return.

  • Bballervirgo1

    I had never used Liberty Tax Service before but this year I chose to do so. It has been a complete nightmare. My taxes were done back in late March and after a couple of amendments I’m just now getting information that my refund will be released and this is now Nov. At Liberty it never disclosed to me that all these other fees were going to be deducted from State and Federal returns. My entire State return was taken in so called fees by whomever they use for check processing. You are paying Liberty and another organization for processing your tax return.

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